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International Tropical Timber Organization INTERNATIONAL TROPICAL TIMBER ORGANIZATION ITTO PROJECT PROPOSAL TITLE: TRACEABILITY OF TIMBER PRODUCED BY FOREST CONCESSIONS AND NATIVE COMMUNITIES IN MADRE DE DIOS AND UCAYALI SERIAL NUMBER: PD 621/11 Rev.3 (M) COMMITTEE: ECONOMIC INFORMATION AND MARKET INTELLIGENCE SUBMITTED BY: GOVERNMENT OF PERU ORIGINAL LANGUAGE: SPANISH SUMMARY This project will be implemented with small and medium timber producing enterprises (SMEs), including native communities and forest concessions in Madre de Dios and Ucayali, as well as timber processing and marketing SMEs, located in the two aforementioned regions as well as in Lima and Arequipa. The project will promote the use of timber sourced from forests under sustainable forest management, with the aim of enhancing the transparency of timber marketing and improving forest governance in the Peruvian Amazon region through the participation of indigenous peoples and small and medium enterprises as key stakeholders in the conservation of forests. Furthermore, the project will build the capacities of farmers, technical personnel and other administrative and executive staff in the management of forest businesses. It will also develop and propose a traceability system that will allow producers to certify the legal origin of marketed timber. The volume of timber harvested from sustainable sources will be increased and guaranteed by a forest certification process and, upon project completion, a timber traceability model will be available and implemented by the SMEs in the regions of Ucayali, Madre de Dios, Lima and Arequipa. EXECUTING AGENCY NATIONAL FORESTRY CHAMBER -- CNF DURATION 27 MONTHS BUDGET AND PROPOSED Source Contribution FUNDING SOURCES in US$ OIMT 349,032.00 CNF 278,125.00 TOTAL 627,157.00 TABLE OF CONTENTS PROJECT BRIEF .......................................................................................................................................................3 LIST OF ABBREVIATIONS AND ACRONYMS ...................................................................................................5 MAP OF PROJECT AREA........................................................................................................................................6 PART 1. PROJECT CONTEXT................................................................................................................................7 1.1 ORIGIN .................................................................................................................................................... 7 1.2 RELEVANCE............................................................................................................................................. 8 1.2.1 Conformity with ITTO’s objectives and priorities .......................................................................... 8 1.2.2 Relevance to submitting country’s policies.....................................................................................8 1.3 TARGET AREA.......................................................................................................................................... 9 1.3.1 Geographic location ....................................................................................................................... 9 1.3.2 Economic, environmental, cultural and social aspects................................................................. 10 1.4 EXPECTED OUTCOMES AT PROJECT COMPLETION................................................................................... 13 PART 2. PROJECT RATIONALE AND OBJECTIVES......................................................................................14 2.1 RATIONALE ........................................................................................................................................... 14 2.1.1 Institutional set-up and organizational issues .............................................................................. 14 2.1.2 Stakeholder analysis ..................................................................................................................... 16 2.1.3 Problem analysis .......................................................................................................................... 20 2.1.4 Logical Framework Matrix........................................................................................................... 22 2.2 OBJECTIVES TREE.................................................................................................................................. 24 2.2.1 Development objective and impact indicators .............................................................................. 25 2.2.2 Specific objective and outcome indicators.................................................................................... 25 PART 3. DESCRIPTION OF PROJECT INTERVENTIONS .............................................................................26 3.1 OUTPUTS AND ACTIVITIES..................................................................................................................... 26 3.3.1 Outputs.......................................................................................................................................... 26 3.3.2 Activities ....................................................................................................................................... 26 3.2 IMPLEMENTATION APPROACHES AND METHODS .................................................................................... 31 3.3 WORK PLAN .......................................................................................................................................... 32 3.4 BUDGET................................................................................................................................................. 33 3.4.1 Consolidated budget by component.............................................................................................. 33 3.4.2 ITTO budget by component........................................................................................................... 36 3.4.3 Executing agency budget by component ....................................................................................... 36 3.4.4 Budget by activity and component (US$)...................................................................................... 37 3.5 ASSUMPTIONS, RISKS AND SUSTAINABILITY .......................................................................................... 38 3.5.1 Assumptions and risks................................................................................................................... 38 3.5.2 Sustainability ................................................................................................................................ 38 PART 4. IMPLEMENTATION ARRANGEMENTS ............................................................................................40 4.1 ORGANIZATION STRUCTURE AND STAKEHOLDER INVOLVEMENT MECHANISMS..................................... 40 4.1.1 Executing agency and partners..................................................................................................... 40 4.1.2 Project management team ............................................................................................................ 41 4.1.3 Project Steering Committee .......................................................................................................... 41 4.1.4 Stakeholder involvement mechanisms........................................................................................... 41 4.2 REPORTING, REVIEW, MONITORING AND EVALUATION .......................................................................... 41 4.3 DISSEMINATION AND MAINSTREAMING OF PROJECT LEARNING ............................................................. 42 4.3.1 DISSEMINATION OF PROJECT RESULTS ............................................................................................... 42 4.3.2 Mainstreaming of project learning ...............................................................................................43 ANNEX 1. PROFILES OF THE EXECUTING AND COLLABORATING AGENCIES .................................44 ANNEX 2. TASKS AND RESPONSIBILITIES OF KEY EXPERTS PROVIDED BY THE EXECUTING AGENCY 46 ANNEX 3. TERMS OF REFERENCE OF PERSONNEL AND CONSULTANTS AND SUB- CONTRACTS FUNDED BY ITTO .........................................................................................................................47 ANNEX 4. RECOMMENDATIONS OF ITTO’S EXPERT PANEL...................................................................49 ANNEX 5. MASTER BUDGET ...............................................................................................................................50 - 2 - PROJECT BRIEF Traceability involves a series of closely interlinked technical and operational procedures that provide for the registration of all products from the source or place of origin of the raw materials, through their processing stages and transport, to the final marketing stage. This benefits forest concessions (producers) and timber companies (processors) by giving them credibility, ensuring the legality of their products in the market (consumers) and providing an efficient monitoring and management system for the competent forest authority. Several Peruvian initiatives have emerged through the implementation of different projects aimed at preventing and correcting the deficiencies detected to date in timber logging, transport and marking procedures, and specialized
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